FED:Everest Financial winds up with de-listing

Everest Financial Group
has asked shareholders to approve de-listing from the local bourse and a buyback of around 40 per cent of its stock, to complete the wind-down of the company.

The move follows the demise of its biggest shareholder,
Babcock & Brown
. Over 16.3 million proxy votes were lodged in favour of removing Everest from the Australian Securities Exchange, but the final vote had not been reported by 11.50 am AEST.

Everest also asked shareholders to enable an exit of their investment in the company via an equal access buyback of up to 10 million shares, or around 40 per cent of the issued capital.

The company's cash balance, operational and other costs meant the buyback would be made at a price of 12.5 cents per share, 0.5 cents less than Everest's last trading price.

Another minimum holding buyback will take place on June 15 for small holdings of shares that constitute less than a marketable parcel, Everest said.

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Those shares will be purchased at 12.5 cents per share and the buyback does not require shareholder support.

Formerly Everest Babcock & Brown, the alternative investment manager has reduced assets under management to zero since announcing its intention to wind down operations last June.

It said it swung to a net loss of $5.6 million in the year ended December 31 from a $3.1 million profit a year earlier.

On Monday, independent director Marea Laszok addressed shareholders at the company's annual meeting in Sydney and characterised the latest developments as a "disappointing end to what was once a very successful business".

The last three years have been marred by the demise of its biggest shareholder, Babcock & Brown, the loss of management rights over its largest fund, clients demanding redemptions from many funds and litigation from some long-standing investors, he said.

The challenges had left the company unable to continue as a viable listed entity, he said.

"I am certain that senior management (both past and present) have learnt many lessons through this trying period, and that these experiences will make them better business people and investment managers going forward," he said.

Mr Laszok was acting as chairman for the for the meeting in the absence of Everest chairman Greg Martin.

Everest listed in April 2005 and its share price reached a record high of $11.30 in May 2006, before falling rapidly during the credit crisis to below 19 cents in November 2008.

Wingate Direct Investments, which previously held 19.9 per cent of Everest, wrote to shareholders last May urging them to vote out the Everest board, claiming that Everest had lost $2.5 billion in assets under management in two years.

Wingate's resolutions were rejected at the time. Everest's market capitalisation is $3.26 million, down from $11 million a year ago.